$5 Billion Asian Development Fund Replenishment Agreed to Support Most Vulnerable in Asia and Pacific

TBILISI, GEORGIA (3 May 2024) — Donors and the Asian Development Bank (ADB) have agreed to a replenishment of $5 billion for ADB’s Asian Development Fund (ADF) 14 and Technical Assistance Special Fund (TASF) 8. The commitment was made during ADB’s 57th Annual Meeting. 

The ADF is ADB’s largest source of grants for operations in its poorest and most vulnerable developing member countries and is replenished every 4 years. ADF 14—marking the 13th replenishment since the fund’s establishment—will support grant operations during 2025­­­–2028. The ADF 14 replenishment is about 22% higher than the $4.1 billion available in ADF 13, and will provide eligible ADB members with the largest-ever volume of ADF grants. TASF 8 will provide grants that help prepare projects, build capacity, and provide technical or policy advice.

“Grants are more important than ever as our poorest and most vulnerable members seek to reverse recent development setbacks and take urgent action to combat the climate crisis,” said ADB President Masatsugu Asakawa. “This remarkable replenishment demonstrates ADF donors’ continued partnership with ADB to address the pressing development challenges of those most in need.”

ADF 14 prioritizes dedicated assistance to small island developing states that are particularly vulnerable—especially to climate change—and to countries in fragile and conflict-affected situations.

ADF 14 will continue to play a critical role in supporting climate change adaptation and disaster risk reduction. It will enable expanded assistance for regional cooperation and regional public goods, and for transformative gender action. It will also provide agile assistance in the event of emergencies through its crisis response window.

More than $2.5 billion, or 51%, of the replenishment will be funded by contributions from donors including two new countries: Armenia and Georgia. ADB will significantly increase its net income transfers to ADF, from just under $1.2 billion in ADF 13 to almost $1.6 billion in ADF 14, an increase of 35%. The remaining $0.9 billion will comprise transfers from earlier ADF cycles and income from liquidity investments. In parallel, ADB intends to provide $16.7 billion in concessional loans, which have very low interest rates over long repayment periods, during the ADF 14 period. Overall, ADB will be able to provide more than $8 in grants and concessional loans for every $1 in donor contributions.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Notes:

The following donors announced contributions to ADF 14: Armenia; Australia; Austria; Canada;  Denmark; Finland; France; Georgia; Germany; Hong Kong, China; India; Indonesia; Ireland; Italy; Japan; Luxembourg; Malaysia; Netherlands; New Zealand; Norway; People’s Republic of China; Philippines; Portugal; Republic of Korea; Spain; Sweden; Switzerland; Taipei,China; Türkiye; United Kingdom; and United States.

The following developing member countries are the primary recipients of grants from ADF 14: Federated States of Micronesia; Kiribati; Kyrgyz Republic; Maldives; Marshall Islands; Nauru; Samoa; Solomon Islands; Tajikistan; Tonga; Tuvalu; and Vanuatu. Grants will also be available to support the people of Afghanistan and Myanmar, and for transformative projects in Bangladesh; Bhutan; Cambodia; Cook Islands; Fiji; Lao People’s Democratic Republic; Mongolia; Nepal; Niue; Pakistan; Palau; Papua New Guinea; Sri Lanka; Timor-Leste; and Uzbekistan.

ADB President Press Conference Opening Statement

Good afternoon and thank you for joining us today for this Annual Meeting press conference.

I am grateful to the Government of Georgia and city of Tbilisi for their excellent arrangements as hosts of our meeting. It is an honor to hold our first Annual Meeting in Georgia and only our second in the Caucuses. 

The theme of this year’s Annual Meeting is “Bridge to the Future,” recognizing Georgia’s location as a crossroads between East and West. It reflects the linkages between Asia and Europe, highlighting the physical, financial, and economic connections now and for the future.  

We meet amidst multiple challenges that impact human and economic development, where progress has stalled for many. It is incumbent on us to intensify efforts to address the climate crisis, eradicate poverty, and foster inclusive socioeconomic development. The Asian Development Bank, alongside other multilateral development banks, plays a pivotal role in these efforts.  

With this in mind, I am pleased to announce that yesterday we concluded the pledging session for the Asian Development Fund 14, or ADF 14. I am very grateful for the generous pledges from donors, which helped to deliver a replenishment of $5 billion.  

This remarkable replenishment marks the largest ever commitment to ADF’s grant operations. It demonstrates ADF donors’ continued partnership with ADB to address the pressing development challenges of those most in need. It makes ADF’s 50th anniversary a golden anniversary indeed. 

Established in 1974, ADF is dedicated to eradicating poverty and enhancing the quality of life in Asia and the Pacific’s poorest and most vulnerable countries. ADF combines contributions from ADB members with net income transfers from ADB’s ordinary capital resources.  

After 50 years, ADF funding remains as crucial as ever. Our ADF grants are more important than ever as our poorest and most vulnerable members seek to reverse recent development setbacks and to spur urgent action to combat the climate crisis.  

My visits to ADF projects have reinforced the transformative impact of this support. 

There are several key features to ADF 14. Let me highlight a few: 

First is continued support for the vulnerable. ADF 14 prioritizes small island developing states, which are among the most vulnerable, especially to climate change.  

Second is ADF’s transformational agenda. ADF 14 focuses on climate change adaptation, disaster risk reduction, promoting gender equality, and driving forward regional cooperation and integration, including regional public goods. 

Third is responsive assistance. ADF 14 remains ready to respond to disasters, health emergencies, and large cross-border displacements in a flexible manner.  

And fourth is crisis support. ADF provides essential support to the people of Afghanistan and Myanmar to focus on their basic needs.    

Our discussions with donors over recent months have shaped a robust vision of ADF’s next four years, reflecting our collective commitment to a sustainable future. We greatly appreciate the strong and continued support from our donors, including Georgia. 

The generous backing from our donors not only fuels these initiatives but fosters a spirit of international cooperation that is crucial in times of global crises. This collaboration enhances our collective capacity to face challenges that no single country can overcome alone. Our efforts will pave the way for a resilient, inclusive, and sustainable region, ensuring that the Asian Development Fund remains a powerful tool for change. 

Thank you once again for joining this press conference for ADB’s 57th Annual Meeting. Let me end here to allow time for your questions. 

Source: ADB; photo from ADB

Developing Asia and the Pacific Unprepared for Challenges of Aging Population

TBILISI, GEORGIA (2 May 2024) — Developing Asia and the Pacific is unprepared to secure the well-being of its rapidly aging population as the growing share of older people in the region faces challenges from low pension coverage to health problems, social isolation, and limited access to essential services.

While longer lifespans reflect the region’s development success, comprehensive policy reforms are urgently needed to support the welfare of older people, according to Aging Well in Asia: Asian Development Policy Report, released today by the Asian Development Bank (ADB) at its 57th Annual Meeting.

The number of people aged 60 and older in developing Asia and the Pacific is set to nearly double by 2050 to 1.2 billion—or about a quarter of the total population—significantly increasing the need for pension and welfare programs as well as health care services. At the same time, economies have an opportunity to reap a “silver dividend” in the form of additional productivity from older people, which could boost gross domestic product in the region by 0.9% on average.

“Asia and the Pacific’s rapid development is a success story, but it’s also fueling a huge demographic shift, and the pressure is rising,” said ADB Chief Economist Albert Park. “Governments need to prepare now if they’re going to be able to help hundreds of millions of people in the region age well. Policies should support lifetime investment in health, education, skills, and financial preparedness for retirement. Family and social ties are also important to foster healthy and productive populations of older people and maximize their contribution to society.”

According to the report, 40% of people over age 60 in Asia and the Pacific lack access to any form of pension—with women disproportionately affected, as they are more likely to do unpaid domestic work. As a result, many older people in the region have no choice but to work well beyond retirement age to survive. Among those still working at age 65 or older, 94% work in the informal sector, which typically doesn’t provide basic labor protections or pension benefits.

Physical and mental health challenges also increase with age. Around 60% of older people in Asia and the Pacific do not attend or receive regular health checks, while 31% report depressive symptoms owing to illness, social isolation, and economic insecurity. Older women in the region are also more likely than older men to suffer from ill health, from depression to diabetes and hypertension. 

The report recommends a wide range of policy measures to support healthy and economically secure aging. Among these are government-assisted health insurance and pension plans, improved health infrastructure, and free annual check-ups and lifestyle evaluations. Policy makers should aim for universal health care coverage, while basic labor protections should be extended to older informal workers, according to the report.

By making mandatory retirement ages more flexible, helping older people stay healthy, and providing them with suitable work opportunities as well as lifelong learning and skills development, economies in the region can help older people stay productive longer.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB, ACEN Sign Php5.5 Billion Sustainability-Linked Loan to Support Solar Energy Generation in the Philippines

MANILA, PHILIPPINES (15 December 2023) –The Asian Development Bank (ADB) and ACEN Corporation have signed a sustainability-linked loan of up to Php5.5 billion (about $100 million) to boost solar energy capacity in the Philippines and support the country’s energy transition goals.

A sustainability-linked loan of up to Php5.5 billion from the Bank of the Philippine Islands (BPI), was also signed by ACEN, with ADB providing a partial credit guarantee covering up to 20% of the principal and interest amount. The guarantee allows BPI to leverage ADB’s AAA credit rating, resulting in a larger facility for ACEN and at a lower margin.

“Asia and the Pacific accounts for more than half of the world’s greenhouse gas emissions and supporting its energy transition from fossil fuel into clean renewable energy is key to ADB’s mission as the region’s climate bank,” said ADB Director General for Private Sector Operations Suzanne Gaboury. "ACEN is a trailblazer in the Philippine market as the first power utility company to divest interests in coal power generation and channel funds into solar and wind power. ADB is proud to have facilitated ACEN’s inaugural issuance of a sustainability-linked loan."

The proceeds will fund ACEN’s solar projects, enabling the generation of at least 450 gigawatt-hours annually, power previously generated through divested coal plants. A total 277,650 tons of carbon dioxide annually will be avoided by 2029. Sustainability-linked loans incentivize the achievement of sustainable performance goals, in return for a variable or lower interest rate. The loan has been certified through second-party opinion provider DNV.

ACEN manages a diversified portfolio of large-scale renewable power generation projects in the Australia, India, Indonesia, the Philippines, and Viet Nam. ACEN is a subsidiary of Ayala Corporation one of the most diversified conglomerates in the Philippines, with interests in real estate, banking, telecom, water, power, infrastructure, industrial technologies, health care, and education.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region

Source: ADB; photo by ADB

ADB, Gobi Sign Sustainability Linked Loan to Support Climate-Resilient Cashmere Value Chain in Mongolia

ULAANBAATAR, MONGOLIA (20 November 2023) — The Asian Development Bank (ADB) and the Gobi Joint Stock Company have signed a $30 million sustainability linked loan to support the cashmere value chain in Mongolia and provide stable incomes and employment to 1,200 herders and 1,300 industry employees. The loan will be used to procure raw cashmere from herders, as well as for cashmere processing activities. 

In addition, a $1 million technical assistance grant will be provided to support scalable sustainable pasture and herd management, and to run workshops on climate-resilient practices for herder groups in the Khuvsgul and Bayankhongor provinces. Sustainability linked loans incentivize the achievement of sustainable performance goals in return for a variable or lower interest rate. This loan will target increased direct procurement from herders, emission reduction, and water conservation, as well as training herders in pasture management.

Mongolian herders are severely affected by climate change, which is causing or contributing to increased heatwaves, droughts, dzuds (severe winter conditions), and desertification. Careful management of pasture and ecology is essential to mitigate the effects of overgrazing and improve climate resilience. The reliable income and technical support provided by Gobi is critical to supporting herders in these endeavors.   

“Mongolia contributes nearly half of the global raw cashmere supply, but most of it is exported and only a fraction is processed into final products inside the country. Fostering a sustainable cashmere production industry will help diversify this important industry and boost its contribution to the broader economy,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “While women are heavily engaged in Mongolia's livestock sector, they lack income-generating jobs and training. Gobi and ADB share a commitment to make sure that women receive a fair share of financial rewards for their hard work, and are able to play a greater role in the industry’s development.”

The grant will support capacity-building activities on sustainable pasture management, basic pasture ecology, financial literacy, and budget management for at least 200 nomadic herders, of which at least 80 will be women. It will also fund support for the improvement of pasture ecology and management and seek solutions to help herders reduce herd sizes while maintaining or increasing income.

ADB will help Gobi to advance gender equity and women’s empowerment in its operations. Key milestones include ensuring that at least half of new operations staff are women; providing training opportunities to female staff; dedicating nearly half of Gobi’s training outreach to women herders; encouraging female herders to join herder groups promoting scalable pasture and herd management; and developing awareness materials on gender-based violence.

“With our partnership with ADB, Gobi JSC will produce more finished goods with value-add, which will increase foreign currency revenue inflow into the country’s economy, as well as create more jobs,” said Gobi JSC Chief Executive Officer Baatarsaikhan Tsagaach.

Gobi is the largest cashmere manufacturer in Mongolia. As a member of the Sustainable Fiber Alliance, Gobi focuses on sustainable value chain practices including sustainable animal husbandry and community management, and procures raw cashmere from Mongolian herders. Gobi is part of Tavan Bogd Group, one of the largest conglomerates in Mongolia, and an existing ADB client.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

More about ADB’s Private Sector Operations

Source: ADB; photo by ADB

ADB, SQB Sign $50 Million Loan to Support Privatization and Expand Lending to MSMEs in Uzbekistan

TASHKENT, UZBEKISTAN (10 November 2023) — The Asian Development Bank (ADB) and Sanoat Qurilish Bank (SQB) signed a $50 million senior convertible loan to support Uzbekistan’s privatization of state-owned banks, which will strengthen the banking sector, contribute to economic growth and job creation. The International Finance Corporation (IFC) and the European Bank for Reconstruction and Development (EBRD) are parallel lenders.

The loan proceeds will be used to help SQB expand its financing to underserved micro, small, and medium-sized enterprises (MSMEs), including those owned or led by women (WMSMEs). Portfolio diversification will contribute to SQB's transition into a fully universal commercial bank by serving a broader customer segment. ADB will also provide technical assistance to help SQB implement its transformation roadmap.

“ADB fully supports the Government of Uzbekistan in its transformation to a vibrant and inclusive market economy and its implementation of banking sector reforms. This project will support the stability of the country’s banking system, capitalization, and deposit levels while strengthening resilience and lending to climate projects and underserved MSMEs and WMSMEs” said ADB’s Director General of the Private Sector Operations Department Suzanne Gaboury. “This project also provides the region with a strong business case for other countries seeking similar reforms.”

In 2017 the Government of Uzbekistan embarked on an ambitious market reform agenda, including the privatization of more than 100 state-owned banks. In 2020, the government’s Strategy for Reforming the Banking Sector, 2020–2025, outlined directions and objectives for the banking sector and prioritized the privatization of six of the largest state-owned banks. ADB, as well as other multilateral development banks, have been supporting the privatization process and banking sector reforms.

“MSMEs continue to struggle to secure commercial financing to fund their growth, with women-owned being the most affected. ADB is supporting the enabling environment in Uzbekistan for MSMEs to have easier access to markets, as well as providing the much needed financing to close the financing gap for MSMEs,” said ADB’s Uzbekistan Country Director Kanokpan Lao-Araya. “ADB’s partnership in SQB builds on those two objectives.”

MSMEs play a significant role in Uzbekistan’s economy, comprising the majority of registered businesses and employing 74% of the workforce. However, access to financing remains a challenge, with only 13% of the sector having access to commercial loans. Women-led businesses face an even greater financing gap, estimated at $2.7 billion, with loans to women-owned businesses making up just approximately 2.5% of total bank loans. 

“ADB’s support comes at a crucial time for SQB to underpin investors’ confidence and further enhance SQB’s environmental, social and governance practices, and its digitalization process. ADB’s support in these areas is very important to us,” said SQB’s Chairman of the Management Board Aziz Akbarjonov.

Founded in 1922, SQB is one of the oldest banks in Uzbekistan and is the second-largest state-owned bank. SQB is one of the strongest brands and banking market leaders with one of the widest branch networks in the country.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB, GreenYellow Sign Deal for Commercial and Industrial Rooftop Solar in Viet Nam

HO CHI MINH, VIET NAM (11 September 2023) — The Asian Development Bank (ADB) and GreenYellow Smart Solutions Vietnam Co., Ltd. (GreenYellow), have signed a loan agreement of up to $13.8 million for rooftop photovoltaic (PV) solar systems to help increase the supply of clean and affordable energy for commercial and industrial consumers in Viet Nam. 

The loan will support the development and operation of solar PV systems located on the rooftops of commercial and industrial businesses across the country. The financing package comprises a $3 million A loan from ADB’s ordinary capital resources and $10.8 million parallel loans from FMO, a climate fund managed by responsAbility Investments AG, and Societe Generale, with ADB as mandated lead arranger. 

A $3 million grant from the Climate Innovation and Development Fund (CIDF), administered by ADB, will also be provided. The grant will help crowd in an international commercial bank by addressing two critical hurdles in financing solar assets with a long economic life in Viet Nam: the lack of long-term dong funding at a fixed interest rate, and potential volatility of the dong–United States dollar exchange rate. 

“As Asia and the Pacific’s climate bank, ADB is increasingly focused on mobilizing private capital to finance renewable energy projects that the region urgently needs,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “Solar PV rooftop offers an efficient way for Viet Nam to deploy substantial amounts of additional renewable energy capacity while providing reliable, low-cost energy to consumers, which helps to attract and retain business and enhance Viet Nam’s global competitiveness.”

This is ADB’s first financing of a solar PV rooftop portfolio for the commercial and industrial segment in Viet Nam. Rooftop solar is an emerging form of renewable energy supply in Viet Nam and its adoption in this sector has been hindered by a high upfront costs and limited financing channels. With a planned total installed capacity of up to 32.3 megawatts at its peak, this project is set to increase clean energy supply to the sector by at least 31.5 gigawatt-hours annually, reducing 15,530 tons of carbon dioxide emissions by 2025.

“Embedded within our core business is a profound commitment to development impact, and our collaboration with ADB uniquely aligns with our corporate mission toward innovative power distribution and driving energy transition," said GreenYellow Vietnam Chief Executive Officer Sebastien Prioux. “ADB’s instrumental role in fostering connections among like-minded partners is integral to our collective journey in actively advancing sustainable development.”

CIDF is a blended finance facility managed by ADB, established in September 2021 with an initial $25 million philanthropic commitment from Bloomberg Philanthropies and Goldman Sachs. The fund has the potential to unlock up to $500 million in private sector and government investments to support sustainable low-carbon economic development. 

Established in 2007, GreenYellow is a French energy transition partner, specializing in decentralized solar photovoltaic production, and energy efficiency, storage and monitoring services. It currently operates in 16 countries across Asia, Africa, Europe, and South America, and entered Viet Nam in 2019. GreenYellow is responsible for the development, funding and operation of infrastructure projects, enabling its clients to produce local and competitive green power, reduce their energy consumption and fast-track their decarbonization.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

Global Trade Finance Gap Expands to $2.5 Trillion in 2022

MANILA, PHILIPPINES (5 September 2023) — The global trade finance gap grew to a record $2.5 trillion in 2022 from $1.7 trillion two years earlier, as rising interest rates, flagging economic prospects, inflation, and geopolitical volatility reduced the capacity of banks to deliver trade financing, according to the 2023 Trade Finance Gaps, Growth and Jobs Survey released today by the Asian Development Bank (ADB). 

The trade finance gap is the difference between requests and approvals for financing to support imports and exports. Rebounding strongly after the COVID-19 pandemic, global goods exports grew in 2021 and 2022 at 26.6% and 11.5%, respectively. Demand for trade finance surged on the back of this sharp recovery but heightened economic risks made finance more difficult to secure than before, the survey indicates. Following a zero-growth rate during the last quarter of 2022, as of April 2023, global trade exports in value slowed year-to-date, showing a decline of around 3%.

The survey is the world’s leading barometer of trade finance health. It includes data from 137 banks and 185 companies from around 50 countries. Respondents said they faced continued constraints in 2022 due to rising interest rates and financial market uncertainties, set against the backdrop of a global economic slowdown, and geopolitical instability.

“The global trade finance funding gap has now widened to well over $2 trillion, as the global economy still struggles to rebound from the pandemic,” said ADB's Director General for Private Sector Operations Suzanne Gaboury. “That growing gap strangles the potential of trade to deliver critical human and economic development through jobs and growth."

Around 60% of responding banks reported that the Russian invasion of Ukraine impacted their trade finance portfolios due to growing geopolitical uncertainty and increased commodity prices.

For the first time, the 2023 trade gaps survey focuses on environmental, social, and governance (ESG) issues, along with digitalization, in a bid to assess their impact on relevant supply chains and the trade finance gap. The majority of banks and companies that took part in the survey believe that ESG alignment could potentially help reduce the trade financing gap.

The top supply chain challenge cited by firms surveyed was insufficient financing. They identified access to adequate financing, reliable logistics, and the use of digital technology as the three most important components of resilient supply chains.

Backed by ADB's AAA credit rating, the TSCFP provides loans and guarantees to more than 200 partner banks to support trade, boosting imports and exports that foster growth. Since 2009, the TSCFP has supported $57 billion in trade across 45,510 transactions in markets where the private sector finds it challenging to operate. TSCFP is working to make global trade and supply chains green, resilient, inclusive, and socially responsible.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB: photo by ADB

ADB, Fourth Partner Energy to Build Solar Power Plant in India, Supplying Commercial and Industrial Sector

NEW DELHI, INDIA (28 August 2023) — The Asian Development Bank (ADB) and Fourth Partner Energy Private Limited (Fourth Partner) signed a long-term loan of up to 1.2 billion Indian rupees (about $14.7 million) to construct and operate a 25-megawatt solar photovoltaic-based power plant to increase clean and low-cost energy supply to commercial and industrial customers.

The power plant, located in Tirunelveli district in the state of Tamil Nadu in India, is expected to generate about 50.7 gigawatt-hours of electricity annually and will directly sell power to commercial and industrial users. India’s progressive open access renewable energy policy allows a group of consumers to purchase electricity directly from an Independent Power Producer (IPP).

“Open access energy procurement can play an important role in businesses achieving their net zero emissions targets,” said ADB’s Private Sector Operations Department Director General Suzanne Gaboury. “Solutions like this are being spearheaded by ADB to promote renewable energy across the region. This is ADB’s first direct financing to a renewable energy plant of this nature and is expected to crowd in international commercial financing to further decarbonize the commercial and industrial sector”.

Nearly 41,700 tons of carbon dioxide emissions a year will be avoided through the plant, which would otherwise have been generated by conventional fossil fuel plants.

“We are excited to add ADB to our esteemed list of green financiers as we move closer to our 3.5 GW renewable energy target by 2025.  Fourth Partner is also constructing solar and wind parks across Ottapidaram, Tuticorin, and Nandikundu in Tamil Nadu,” said Fourth Partner Energy Co-Founder and Executive Director Vivek Subramanian. “We see this project as the beginning of our long-standing partnership with ADB to deliver cleaner, affordable power to India’s commercial and industrial sector,”

ADB has supported the development of renewable energy in India since 2007 when it financed the first set of wind projects under the IPP model. ADB has subsequently financed solar IPPs by assisting projects under the National Solar Mission and various state policies.

Fourth Partner is India’s leading renewable energy solutions platform, focused on building and financing renewable energy projects for commercial and industrial consumers. It offers end-to-end capabilities including evaluation, design, planning, procurement, construction, operation, maintenance, and financing of critical solar, wind, and battery storage infrastructure.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB, Georgia Capital Partner to Issue Sustainability-Linked Bond, Largest of its Kind in Region

TBILISI, GEORGIA (3 AUGUST 2023) — The Asian Development Bank (ADB) and Joint Stock Company Georgia Capital (GCAP) partnered to issue GCAP’s inaugural sustainability-linked bond. As a strategic investor, ADB provided foundational support to adopt this innovative instrument. This is ADB’s first subscription to a private sector sustainability-linked bond.

GCAP’s total issuance of $150 million with a 5-year tenor is the largest bond listed on the Georgian Stock Exchange and the largest sustainability-linked issuance in Georgia and the Caucasus, to date. ADB will invest $16 million, and the proceeds will be earmarked for refinancing renewable energy and education investments, and for financing corporate measures to achieve the group’s sustainability-linked key performance indicator.

“This investment builds on ADB’s commitment, as Asia and the Pacific’s climate bank, to develop capital markets in ADB’s developing member countries through innovative and path finder issuances, especially in the climate and sustainability space,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “ADB’s long-standing partnership with GCAP provided the opportunity to propose the issuance of this sustainability-linked instrument. The sheer size of this issuance and the healthy private sector demand it managed to generate, is expected to spur further climate-related bond issuances in Georgia and throughout the Caucasus region."

Sustainability-linked bonds are forward-looking, performance-based debt instruments with climate-related objectives that are measured through predefined key performance indicators and are assessed against sustainability performance targets. Second-party opinion on the credibility of bonds issued was provided by Sustainalytics, based on the issuer’s sustainability-linked bond framework which is aligned with the International Capital Markets Association’s Sustainability-linked Bond Principles.

This issuance is critical to GCAP achieving its goal of being net zero in its operations by 2050. A key feature of the sustainability-linked bond is GCAP’s commitment to reduce its greenhouse gas emissions by 20% by 2027 compared to the 2022 baseline. This will also support Georgia’s commitment under the Paris Agreement to reduce GHG emissions to 35% below 1990 levels by 2030. This landmark transaction has mobilized an unprecedented $83 million of private sector investors for a Georgian-listed corporate bond.

“Georgia Capital has pioneered corporate commitments to net zero, and we continue to support our country’s efforts to transition to a carbon-neutral economy,” said Georgia Capital Chairman and Chief Executive Officer Irakli Gilauri. “This bond will also support the development of the local capital market and promote the use of sustainable finance instruments and standards in the region. It will enhance our financial flexibility and provide an opportunity to continue with substantial deleveraging. We are thankful for ADB’s support and look forward to further collaboration on climate investments.”

GCAP is one of the largest private investment companies in Georgia. Its diversified portfolio includes investments and operations in banking and insurance, health care, renewable energy, water utility services, education, and housing and hospitality. Georgia Capital PLC, the parent company of GCAP, is listed on the London Stock Exchange. ADB and Georgia Capital’s portfolio companies have worked together in several transactions since 2019.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB

ADB and ACWA Power Sign Deal for Two Utility-Scale Wind Power Plants in Uzbekistan, the Region’s Largest Wind Development

TASHKENT, UZBEKISTAN (24 April 2023) — The Asian Development Bank (ADB) and ACWA Power Company (ACWA) signed $174 million worth of loans to develop the Bash wind power and Dzhankeldy wind power plants, both located in the Bukhara region in Uzbekistan.

The financing comprises loans amounting to $40.5 million for Bash and $46.5 million for the Dzhankeldy funded through ADB’s ordinary capital resources. ADB will also administer $40.5 million for Bash and $46.5 million for Dzhankeldy from the Leading Asia's Private Infrastructure Fund (LEAP), administered by ADB.

Each power plant consists of 79 wind turbines, for a total of 158 turbines that will generate 3,235 gigawatt-hours and displace nearly 2 million tons of carbon dioxide equivalent a year. Together, Bash and Dzhankeldy will be the largest utility-scale wind power development in the Central West Asia region. The loans will also fund the construction of 282.5 kilometers of 500-kilovolt, single-circuit overhead transmission to connect to the power grid.

“Uzbekistan is one of the fastest-growing economies in Central Asia, and with it comes a growing demand for energy. This brings a unique opportunity to invest in decarbonization and expansion of renewables in the country’s energy mix,” said ADB Director General for Private Sector Operations Suzanne Gaboury. “Bash and Dzhankeldy are landmark greenfield wind power projects which have a significant demonstrative impact of private sector participation across the region’s energy sector.”

ADB has supported approximately 2,500 megawatts of renewable energy in Uzbekistan since 2019, after the country opened up the sector to private sector participants. The total cost of ADB’s latest collaboration with ACWA is approximately $1.35 billion.

Parallel lenders include the Deutsche Investitions- und Entwicklungsgesellschaft mbH (DEG), European Bank for Reconstruction and Development, OPEC Fund for International Development, and Proparco.

LEAP is an ADB-managed fund capitalized with a $1.5 billion commitment by the Japan International Cooperation Agency. Established in 2016, LEAP focuses on delivering high-quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing member countries.

Bash and Dzhankeldy are special-purpose vehicles owned by ACWA Power, a regional leader in renewable energy. ACWA was established in 2008 and is a developer, investor, and operator of power generation and desalination plants, with 67 assets in operation, construction, or advanced development across 13 countries. ACWA’s portfolio has a capacity of 43.4 gigawatts of power and 6.4 million cubic meters per day of desalinated water.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB

ADB, MASDAR to Unlock Uzbekistan’s Renewable Power Potential With 3 New Solar Power Plants

TASHKENT, UZBEKISTAN (6 April 2023) — The Asian Development Bank (ADB) and Abu Dhabi Future Energy Company PJSC (Masdar) have signed three loans to build three solar power plants in Uzbekistan’s Surkhandarya (Sherabad), Samarkand, and Jizzakh regions. Together these power plants will be able to generate 897 MW, making them the region’s largest solar power development.

The financing package is composed of three loans from ADB’s ordinary capital resources amounting to $36.7 million for Sherabad, $13.5 million for Samarkand, and $14.3 million for Jizzakh power plant. Additionally, ADB mobilized much-needed private institutional capital for the three power plants. This was achieved through the arrangement of an aggregated B-loan syndication of $37.5 million. The B-loan participant is ILX Fund I, an Amsterdam-based SDG-focused emerging market private credit fund.

ADB is joined in the financing of the three projects by the Asian Infrastructure Investment Bank, the European Bank for Reconstruction and Development, and the European Investment Bank as parallel lenders.

"Uzbekistan has tremendous potential to generate clean energy through its abundant solar and wind resources, and ADB’s financing plays a part in Uzbekistan’s journey towards a carbon neutral economy. ADB strives to promote an enabling environment through these transformative projects,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “As Asia’s climate bank, ADB has increased its climate financing targets to promote meaningful decarbonization and expansion of renewables in the energy sector. Our participation helped to crowd in significant equity capital from a credible sponsor and mobilized institutional capital that will serve as a vote of confidence for future projects in Uzbekistan’s renewables sector.”

The Sherabad power plant project development, the largest of the three projects, was led by ADB through its public-private partnership transaction advisory services role to the Government of Uzbekistan which consisted of assisting in its preparation and structuring of the successful tender. ADB also provided a $9.1 million partial credit guarantee to support the tariff payment obligations of the National Electric Grid of Uzbekistan, the offtaker. The three power plants will offset more than 1 million metric tons of carbon dioxide-equivalent emissions annually on average, and power over one million households.

“Reaching this milestone for all three projects is a proud moment for Masdar and a key stage for Uzbekistan’s clean energy journey. Masdar is already playing a significant role in supporting the Government of Uzbekistan’s ambitious renewable energy objectives, and we look forward to continuing to grow our portfolio of projects in this key strategic market,” said Masdar Chief Financial Officer Niall Hannigan. “This achievement would also not have been possible without the support of the Government of Uzbekistan as well as our financial partners, who have demonstrated unwavering commitment to driving sustainable economic growth for the people of Uzbekistan.”

The solar power plants will improve the affordability and accessibility of reliable and clean energy for all the people of Uzbekistan, including households and businesses. Moreover, the borrower committed to implementing a gender action plan that will benefit women’s standing in the energy field, facilitate their access to jobs and economic opportunities in Uzbekistan’s clean energy transition, and encourage women’s overall participation in the renewable energy sector.

Masdar is a global leader in renewable energy, active in more than 40 countries and invested in projects with a combined capacity of more than 20 gigawatts (GW), enough to power over 5.25 million homes. The company is targeting a combined portfolio capacity of at least 100 GW by 2030, with expectations of doubling that in coming years.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; Photo by ADB

ADB Signs Loan for First Cross-Border Wind Power Project in Asia, First Plant in Lao PDR and Largest in Southeast Asia

MANILA, PHILIPPINES (30 March 2023) —The Asian Development Bank (ADB), through its Trade and Supply Chain Finance Program (TSCFP), has initiated a series of discussions with government agencies in several of its developing member countries to help them align their regulatory frameworks with international laws that enable paperless trade.

In close collaboration with the International Chamber of Commerce (ICC), the Digital Standard Initiative (DSI), and the United Nations Commission on International Trade Law (UNCITRAL), ADB is advocating for the adoption and alignment of national regulations with UNCITRAL’s Model Law on Electronic Transferable Records (MLETR). MLETR creates a legal framework for national laws to enable the use and recognition of electronic transferable records, both domestically and across borders.

“Laws recognizing electronic trade documents are crucial to digitalize global trade and realize tremendous benefits for economies in terms of growth and jobs,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “We are convinced that the widespread adoption of MLETR, or comparable legislation, holds the promise of increased efficiency, security, and transparency of global trade and supply chains. Digitalization of trade is a key priority for ADB. We are working hard with our developing member countries to create more resilient, green, and inclusive trade and supply chains that are good for business, the environment, and economies.”

Replacing physical documents for trade, such as bills of lading, with electronic versions would allow more companies in developing Asia—especially small and medium-sized enterprises—to access global trade and supply chains. It will also make it easier to monitor activities in those networks to ensure adherence to environmental and social standards.

This year, as part of accelerating digital trade under the Central Asia Regional Economic Cooperation (CAREC) Integrated Trade Agenda 2030, ADB is providing technical assistance on MLETR to the People’s Republic of China (PRC) and Georgia. Working closely with the PRC’s Ministry of Commerce and with the Georgia Revenue Service under the Ministry of Finance, the initiative will raise public and private stakeholder awareness of MLETR, and its benefits to trade, as well as facilitate national-level discussions on the potential adoption of MLETR and enabling reforms to digitalize trade.

“This initiative is extremely welcome and provides a model of best practice for other multilateral development banks. Time and again, I hear the same story from businesses. The number one obstacle to delivering a cheaper, faster, simpler trade system is legal barriers. It’s absolutely essential these barriers to digitalizing trade documents are removed and legal systems are aligned to MLETR,” said Legal Reform Advisory Board (LRAB) and ICC DSI Co-Chair Chris Southworth. “This will enable trade information to flow in digital form and all the unnecessary paper, bureaucracy, and inefficiency to be removed. Removing legal barriers will provide a trading environment fit for the 21st century, enabling technology solutions to scale, reduce barriers to finance, and crucially allow more small companies to participate at a lower cost.”

ADB, the ICC, and the Government of Singapore have formed LRAB as part of the DSI to help harmonize legislative frameworks. ADB is joined in this global initiative by partner multilateral institutions, including the European Bank for Reconstruction and Development, the Bankers Association for Finance and Trade, the Commonwealth, Economic and Social Commission for Asia and the Pacific (ESCAP), the International Trade and Forfaiting Association, UNCITRAL, and the ASEAN Economy Community.

Backed by ADB's AAA credit rating and working with more than 250 partner banks, TSCFP enables trade and supply chains with loans and guarantees that underpin economic growth and create jobs to improve people’s lives. TSCFP initiatives help to make global trade and supply chains green, resilient, inclusive, transparent, and socially responsible.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB Signs Loan for First Cross-Border Wind Power Project in Asia, First Plant in Lao PDR and Largest in Southeast Asia

VIENTIANE, LAO PEOPLE’S DEMOCRATIC REPUBLIC (1 March 2023) — The Asian Development Bank (ADB) and Monsoon Wind Power Company Limited (Monsoon) signed a $ 692.55 million nonrecourse project financing package to build a 600-megawatt wind power plant in Sekong and Attapeu provinces in the southern region of the Lao People’s Democratic Republic (Lao PDR) to export and sell power to neighboring Viet Nam. Comprising 133 wind turbines, the project will be the largest wind power plant in Southeast Asia and the first in the Lao PDR.

As sole mandated lead arranger and bookrunner, ADB has, arranged, structured, and syndicated the entire financing package—the largest syndicated renewable project financing transaction among ASEAN countries to date. The package comprises a $100 million A loan from ADB’s ordinary capital resources, a $150 million syndicated B loan, $50 million in concessional financing, $382.55 million in parallel loans, and a $10 million grant. Cutting edge use of concessional blended finance was critical in overcoming the project’s bankability hurdles to crowd in commercial capital.

“Developing economies in Asia and the Pacific face shortfalls in climate investments that are needed to clear a pathway to green growth. The syndication of development and commercial financing for this project bridges this gap by mobilizing private capital to develop wind resources which are translated into clean power generation that can spur economic and social advancement in the region,” said ADB Private Sector Operations Department Director General Suzanne Gaboury.“ The financing from ADB and its partners will help unlock the Lao PDR’s untapped wind resources, providing a basis for a transition to clean energy and green growth that will have lasting benefits for the economy.”

Cross-border power supply has been a pillar of the Lao PDR’s economic growth. Harnessing the country’s untapped wind resources can provide energy diversification as the seasonality of the wind resource is countercyclical to the rainy season, which supports the country’s hydropower generation. The project will reduce annual greenhouse gas emissions by at least 748,867 tons of carbon dioxide equivalent.

The B loan comprises $100 million from Siam Commercial Bank and $50 million from Sumitomo Mitsui Banking Corporation while the concessional financing administered by ADB comprises $20 million from the Leading Asia’s Private Infrastructure Fund (LEAP) and $30 million from the Canadian Climate Fund for the Private Sector in Asia (CFPS, CFPS II). Parallel loans include $120 million from the Japan International Cooperation Agency, $100 million from Kasikorn Bank, $72.55 million from the Asian Infrastructure Investment Bank, $60 million from the Export-Import Bank of Thailand, and $30 million from the Hong Kong Mortgage Corporation Limited. A $10 million grant from ADB’s Asian Development Fund (ADF) – Private Sector Window (ADB-PSW) will help mitigate key project risks, including potential curtailment risk, which is a key bankability issue for lenders.

“Together with ADB, we take this milestone step in the global fight against climate change coupled with our own corporate mission to uplift the well-being and happiness of the local communities we work within,” said the project’s developer Impact Electrons Siam Company Limited Chief Executive Officer Peck Khamkanist. “We thank ADB for its leadership in their catalytic arrangement of this deal’s financing bringing together multiple parties both from commercial as well as the development sphere.”

LEAP is an ADB-managed fund capitalized with a $1.5 billion commitment by the Japan International Cooperation Agency. Established in 2016, LEAP focuses on delivering high-quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing member countries.

CFPS and CFPSII are ADB-managed concessional funds, established with contributions of $231.5 million from Global Affairs Canada. The funds are designed to support greater private sector participation in climate change mitigation and adaptation in low and lower middle-income countries and upper middle-income small island developing states in Asia and the Pacific. The funds also seek to promote gender equality and the empowerment of women and girls.

ADB-PSW is a facility approved by ADF donors in 2020 that supports private sector development in frontier markets by offering grant resources to fund financial products that address and reduce common financing constraints that hinder many private sector transactions.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB Supports Georgia’s Capital Market with Subscription to Country’s First Certified Gender Bond

TBILISI, GEORGIA (13 February 2023) — The Asian Development Bank (ADB) has invested GEL18.75 million (approximately $7 million) in a 2-year local currency gender bond issuance by Joint Stock Company Microfinance Organization Crystal (Crystal), the largest microfinance institution (MFI) in Georgia. It is the first certified gender bond issuance in the South Caucasus and in the Georgian Stock Exchange.

The proceeds will finance women-owned micro, small and medium-sized enterprises (WMSMEs). The total bond issuance amounts to GEL 25 million with ADB as the anchor investor and the Bank of Georgia as co-investor with a subscription of GEL 6.25 million. Gender bonds are social bonds issued to enhance gender equality and women's empowerment. Crystal’s gender bond framework received a second party opinion to certify its compliance with the Social Bond Principles of the International Capital Market Association.

“Local currency bonds bridge financing gaps that prevent developing countries from achieving sustainable and inclusive growth, and support sound capital management by the private sector,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “This pioneering transaction will also help deepen Georgia’s capital market by raising awareness about thematic bonds aligned to best international standards while supporting improved access to finance for WMSMEs.”

Micro, small and medium-sized enterprises play a critical role in Georgia’s economy, accounting for most private firms and providing more than half of all jobs, but their growth is constrained by a lack of access to finance. Women in particular are disproportionately affected due to high collateral requirements and other cultural biases that hamper asset ownership. MFIs play an important role in providing access to finance to low-income borrowers particularly in remote rural areas, which traditional commercial banks are generally reluctant to serve.

“Crystal has always been an active supporter of the sustainable financing and small entrepreneurs, and our efforts have been recognized by numerous corporate awards and investment deals,” stated Crystal’s Chief Executive Officer Ilia Revia. “This transaction demonstrates that ADB and Crystal share a commitment to improving access to finance for women entrepreneurs in Georgia, which will ultimately contribute to the country’s economic development."

Crystal is the leading financial inclusion organization and the largest non-banking financial institution in Georgia. It manages a loan portfolio of GEL 400 million, employing more than 1,000 staff, and operating through 50 branches serving more than 130,000 customers across Georgia.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB and Cambodia Post Bank Sign $10 Million Loan to Improve Access to Finance for MSMEs in Cambodia

PHNOM PENH, CAMBODIA (8 February 2023) — The Asian Development Bank (ADB) and Cambodia Post Bank (CP Bank) signed a loan of up to $10 million to support the recovery of micro, small, and medium-sized enterprises (MSMEs) in Cambodia from the COVID-19 pandemic by expanding their access to finance. At least 50% of the proceeds are marked to finance MSMEs led by women.

“Improving MSMEs’ access to working capital and longer term financing has considerable benefits, not only for their growth but also for job creation and broader economic recovery,” said ADB Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa. “This financing will support the profitability of these businesses by improving their competitiveness and giving them access to domestic and international production networks.”

MSMEs account for 99.8% of all enterprises in Cambodia and employ upwards of 72% of the labor force. Cambodian MSMEs have limited access to finance, with less than 20% of unregistered enterprises acquiring a loan or a line of credit from a financial institution. Most of them are owned by women. The challenges facing female entrepreneurs are particularly acute, with fewer than 5% having access to formal credit.

“CP Bank has prioritized the development of financing for MSMEs to help them grow and evolve so they can create more jobs and expand their contribution to the broader economy. The assistance from ADB will help us to provide additional financial products and services to these underserved businesses while supporting their working capital and investment needs,” said CP Bank CEO Toch Chaochek.

ADB will help CP Bank to incorporate gender equality and women’s empowerment into its business activities through the development of a gender action plan and the appointment of a staff-level gender focal point.

Since joining ADB in 1992, Cambodia has received over $4.7 billion in sovereign and nonsovereign loans, guarantees, and technical assistance for agriculture, irrigation, finance, transport, energy, and water supply and sanitation among others. ADB’s support is closely aligned with the country’s development priorities. Recent ADB assistance has helped to mitigate the impacts of COVID-19 and strengthen access for women, particularly in provinces. ADB has also supported public–private partnerships and private sector renewable energy projects in Cambodia.

Based in Phnom Penh, CP Bank provides financial services to MSMEs and retail consumers with a focus on middle-lower-income and emerging middle-income segments. It has the country’s fifth-largest branch network and serves more than 258,600 customers in urban and rural areas.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB, DSNG Sign Sustainability-Linked Loan to Support Rural Livelihoods and Agroforestry in Indonesia

JAKARTA, INDONESIA (27 January 2022) — The Asian Development Bank (ADB) signed a $15 million loan facility with PT Dharma Satya Nusantara Tbk (DSNG) to help the company expand sustainable wood processing, rural livelihood development, and climate-resilient agroforestry in Java, Indonesia.

The ADB proceeds will finance capital expenditure to implement energy-efficient and water-saving processes, and procurement of cultivated native Indonesian Sengon and Jabon trees. Farmed native trees can be a sustainable alternative to natural timber, preventing deforestation and supporting biodiversity.

DSNG sources timber from Central, East, and West Java. The majority of Sengon and Jabon trees are cultivated by smallholder farmers and are intercropped with a variety of other crops including coffee, corn, and rice. As well as enabling the utilization of otherwise unproductive land, intercropping trees with food crops can reduce erosion, enhance soil health, and in many cases improve crop yields.

“The region faces increasing climate shocks, impacting livelihoods, food, water, and health for millions of people with women disproportionately affected,” said ADB’s Private Sector Operations Department Senior Investment Specialist Carine Donges. “ADB’s assistance will promote sustainable and inclusive agroforestry, preventing deforestation and supporting biodiversity, while demonstrating how the private sector can improve rural livelihoods and climate resilience through innovative sourcing models and by providing training to farmers.”

A $500,000 technical assistance grant administered by ADB will provide capacity building in climate-resilient agricultural practices for complex agroforestry systems and financial literacy to about 4,000 farmers, at least 1,200 of them women.

As a sustainability-linked loan, this financing demonstrates ADB’s and DSNG’s commitment to a low-carbon and climate-resilient future. It is DSNG’s first sustainability-linked financing, with adjustments in pricing upon achieving pre-defined annual sustainability targets, including training farmers to obtain forest management certification from the Forest Stewardship Council. The sustainability-linked loan has received an independent second-party opinion, consistent with industry principles.

“Sustainability is embedded in how DSNG runs its business, and we are constantly driving ourselves to achieve value and positive impacts. This sustainability linked loan with ADB dovetails with our vision to be a business that is responsible for our people, our planet and our common prosperity,” said DSNG Director Jenti Widjaja. “By incorporating sustainability metrics through key aspects of our business, from our supply chain and operations to financing, we aim to strengthen the alignment between creating value and delivering positive impacts for all of our stakeholders in our wood business.”

Established in 1980, DSNG is listed on the Indonesia Stock Exchange. In the wood segment of its business, the company operates two wood processing plants in Central Java with an installed capacity of 150,000 square meters a month for engineered flooring and 9,000 cubic meter per month for panels. DSNG is one of Indonesia’s leading forestry companies and its largest exporter of wood products to Japan.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB; photo by ADB

ADB Signs $131 Million Loan to Support the Jawaharlal Nehru Port Container Terminal Upgrade, Enhance International Trade

NEW DELHI, INDIA (23 January 2023) — The Asian Development Bank (ADB) and Nhava Sheva Freeport Terminal Private Limited (NSFTPL) signed a $131 million loan to upgrade the Jawaharlal Nehru Port Container Terminal located in Navi Mumbai Maharashtra to enhance international trade in India through efficient, transparent, and state-of-the-art logistics infrastructure.

The financing package comprises $61.4 million from ADB’s ordinary capital resources and $69.6 million from Leading Asia’s Private Infrastructure Fund (LEAP) administered by ADB. The funds will be used to upgrade existing berths and yards and install additional energy efficient equipment such as electric quay cranes. These upgrades will expand the terminal’s container handling capacity and attract vessels operating on important international shipping lanes.

NSFTPL is a special purpose vehicle jointly owned by J M Baxi Ports and Logistics Limited (JMBPL) and CMA Terminals.

“Global trade and supply chains are vulnerable to shocks, and enhancing countries’ capacity for trade is critical to the region’s recovery from COVID-19 and its ongoing prosperity, “ said ADB Vice-President for Private Sector Operations and Public–Private Partnerships Ashok Lavasa. “Long-term financial support from ADB can boost economic competitiveness in India by developing world-class mega ports and boosting the efficiency of containerized cargo terminal operations.”

“We are absolutely delighted to sign the Financing Agreement with ADB, which is the largest loan agreement signed by us so far, and we appreciate ADB’s commitment and agility in bringing this deal to a smooth closure in record time,” said NSFTPL Board member and JMBPL Managing Director Dhruv Kotak. “Nhava Sheva Freeport Terminal is a key terminal for the country and this deal underscores India’s potential in becoming a $10 trillion economy by 2035. We are proud to have ADB support us in our endeavor to make international trade seamless, and this partnership is a testimony of our shared value system of the highest level of governance, transparency, and compliance” he added.

JMBPL is a part of J M Baxi Group, a 106-year-old marine services, ports, logistics and technology conglomerate offering the entire range of logistics services including port facilities such as container and multi-cargo port terminals, container freight stations and inland container depots, niche logistics services for project and bulk cargo, offshore installations and ship agency services. CMA Terminals was established in 2012 and is engaged in the development, construction, acquisition, and operations of container terminals. It is wholly owned by CMA Terminals Holding, a subsidiary of the CMA CGM Group, a global player in sea, land, air, and logistics solutions.

LEAP is an ADB-managed fund capitalized with a $1.5 billion commitment by the Japan International Cooperation Agency. Established in 2016, LEAP focuses on delivering high-quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing members.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB: photo by ADB

ADB Invests $25 Million in Quadria Capital Fund III for Health Care Investments in Developing Asia

MANILA, PHILIPPINES (17 January 2023) — The Asian Development Bank (ADB) signed a $25 million equity investment with Quadria Capital Fund III LP (Quadria III) to enhance the quality, accessibility, and affordability of health care in Southeast Asia and South Asia by supporting the growth of health care companies in these regions.

Managed by Quadria Capital, Quadria III has a target size of $800 million, which will be used to provide fresh capital to established companies operating in health care services, pharmaceuticals and life sciences, medical devices and consumables, health technology, as well as consumer health care distribution and retail segments. Average investments are expected to range from $70 million to $200 million, with larger investments expected to mobilize co-investment capital. The fund may also selectively invest in early-stage health care companies.

“As one of the few healthcare funds dedicated to Southeast Asia ADB is excited to partner with Quadria Capital in this important sector,” said ADB Private Sector Investment Funds and Special Initiatives Division Director Janette Hall. “Through its investment, ADB will help Quadria III implement a gender impact tool to identify health care investments that address gender inequalities, promote women as a source of innovation, and support women’s empowerment.”

Founded in 2012, Quadria Capital is a private equity firm based in Asia focusing on health care, with over $ 1.6 billion in assets under management. This is ADB’s first investment in a health care fund managed by Quadria Capital.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members — 49 from the region.

Source: ADB

ADB, Tavan Bogd Group Sign Loan to Support Food Security, Inclusive Business in Mongolia

ULAANBAATAR, MONGOLIA (9 December 2022) — The Asian Development Bank (ADB), Ulaanbaatar Flour (UBF), Tavan Bogd Foods (TBF), and Tavan Bogd Foods Pizza (TBF Pizza) today signed an $18 million loan to support food security and job creation in Mongolia. This assistance will help mitigate supply chain disruptions caused by the COVID-19 pandemic and the Russian invasion of Ukraine.

The loan comprises $8 million in assistance to UBF, $6 million to TBF, and $4 million to TBF Pizza. The proceeds will be used for additional working capital support for UBF to procure 60,000 tons of wheat directly from 6,000 local farmers. TBF and TBF Pizza will use the financing to construct eight additional quick-service restaurants and warehouses. Between the three companies, this project will support the livelihoods of 1,503 employees and create 358 new jobs.

“Securing domestic wheat supply is essential to the country’s food security, as wheat products account for a third of Mongolian’s caloric intake,” said ADB Private Sector Operations Department Director General Suzanne Gaboury. “We are delighted to work again with the Tavan Bogd group to boost food security and promote inclusive business in Mongolia.”

The loan will support gender equality and disability inclusion by hiring people with disabilities with a focus on women, displaying gender equality messaging in TBF restaurants, training staff on gender-sensitive disability inclusion, and by providing internships for women at UBF.

”We are pleased to cooperate again with ADB,” said Tavan Bogd Group Executive Director Khulan Dashdavaa. “The project will create more employment opportunities for UBF, TBF, and TBF Pizza as these companies already have in place strong policies to provide job opportunities to the disabled segment of the population. The new warehouses and restaurants will support local vendors and businesses while mitigating supply chain and food security risks due to logistics disruptions in the region.”

Food security is a priority for ADB, which recently announced plans to provide at least $14 billion over 2022–2025 to ease a worsening food crisis in Asia and the Pacific. Direct support to farmers and agribusinesses is key to this initiative with an expected $3.5 billion from ADB and $5 billion in cofinancing to be provided to the private sector, including the loan to Tavan Bogd.

UBF is one of the country’s largest buyers of domestically grown wheat and is the leading wheat miller with a 35% market share. TBF and TBF Pizza operate KFC and Pizza Hut quick-service restaurants and are key players in the food delivery industry. UBF, TBF, and TBF Pizza are members of the Tavan Bogd Group, one of the country’s largest diversified business groups.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB

ADB, Tiger Infrastructure Sign $40 Million Loan to Support Rural Connectivity in Southern Philippines

MANILA, PHILIPPINES (7 December 2022) — The Asian Development Bank (ADB) signed a $40 million loan with Tiger Infrastructure Philippines, Inc. (Tiger Infrastructure) to build 380 telecommunications towers in the Mindanao and Visayas regions of the Philippines. This infrastructure will enable mobile network operators to provide a full range of mobile and data services to consumers.

The financing comprises $25 million from ADB’s ordinary capital resources and a $15 million loan from the Leading Asia’s Private Infrastructure Fund administered by ADB.

Telecommunication towers support one or more wireless telecommunication antennae. The project will support common tower sharing, which will allow multiple mobile network operators to lease the same location while Tiger Infrastructure will be responsible for construction, land leasing, operation, and maintenance. All telecommunication equipment installed on the towers will belong to the tenants.

“Digital connectivity’s impact in helping to achieve Sustainable Development Goals cannot be understated, especially in areas like education, health care, financing, and payments,” said ADB's Private Sector Operations Department Director General Suzanne Gaboury. “This project will improve access to the digital economy in the underserved regions of Visayas and Mindanao and have a tangible impact on the quality of life for local communities.”

The Philippines has only 164 towers per 1 million people or about 27,000 telecom towers as of 2021, one of the lowest coverage rates in the region. The Government of the Philippines estimates that an additional 60,000 towers are needed by 2031 in unserved and underserved areas.

"We are honored to receive this support and endorsement from ADB. Together, we share a vision of supporting Philippines' development through mobile network connectivity and digital transformation,” said Tiger Infrastructure Group Executive Chairman Simon Skouboe. “We are confident that by working with ADB, Tiger can strengthen our digital infrastructure portfolio as we continue to respond to demand for reliable mobile network connectivity in Asia."

Tiger Infrastructure is jointly owned by Cell Tower Services Pte. Ltd (CTSP) and Daily Life Renewable Energy Pte. Ltd (DLRE), both incorporated in Singapore. CTSP is well established in the telecommunications towers business with projects around the world, while DLRE is involved in customized design, engineering, procurement, construction, installation, and commissioning services for renewable energy systems across Asia and the Pacific.

LEAP is an ADB-managed fund capitalized with a $1.5 billion commitment by the Japan International Cooperation Agency. Established in 2016, LEAP is focused on the delivery of high-quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing members.

ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

Source: ADB